3 years after firing, Elon Musk reaches settlement with Indian man, agrees to pay severance to former Twitter CEO…

Elon Musk nor the executives’ lawyers have commented publicly on the agreement yet.

Elon Musk has reached a settlement to pay severance to former Twitter CEO Parag Agrawal and three other top executives. He fired them after the $44 billion takeover of the company in 2022. The dispute was with Agrawal, former CFO Ned Segal, former legal chief Vijaya Gadde, and ex-general counsel Sean Edgett. They all collectively sued Musk and X Corp for $128 million in unpaid severance. They argued about compensation agreements guaranteed one year’s salary and substantial stock benefits.

Elon Musk To Pay Severance To Parag Agrawal

According to a recent court filing in San Francisco, the settlement’s terms have not been disclosed publicly. Both sides have agreed and a judge has paused all court deadlines for finalization. The lawsuit claimed Musk fired the executives and accused them of misconduct to avoid paying contractual severance. Musk and X Corp denied this and stated that the terminations were due to performance issues and not as a way to dodge severance payments.

Challenges In Front Of Musk After Twitter Acquisition

Musk faced many legal challenges after Twitter acquisition like mass downsizing at X and litigation with thousands of former employees over unpaid severance. It also includes a separate $500 million class-action settlement in August for rank-and-file staff. The settlement with Agrawal and others will close one of Musk’s major post-acquisition controversies.